Saturday, June 15, 2013

Risk and Reward ? Is it?

In the financial world ,Risk and reward is a well known term used for evaluation the return on investment.The general percept is that Higher the risk ,Higher the return.This is also true  about our Life in many ways as can be seen in the following real life examples
  •                 Sachin Tendulkar, the finest batsman of the modern era made his International Cricket debut at the ripe young age of 16
  •                 Warren Buffett ,the iconic investor started investing in stocks at age of 11 and he thinks he started investing too late!
  •                 Srinivasa Ramanujan, the mathematical genius without formal training displayed tremendous math skills even at the age of 11

We all know that these folks attained the pinnacle in their respective fields, which is purely high reward in the financial parlance.In terms of the effort,as seen by the layman, Tendulkar,Buffett & Ramanujan took tremendous risk. If you personally ask them how they took the risk, they might as well ask you back “Risk….what risk?”. They would as well call it as Focus.
Yes…they were all Focused…Focused enough that they found out the purpose of their life when they were still young and put in all their effort on that single minded purpose…you could see that in the height they reached in their life….
Sachin flunked in his school ,but never let the Education interfere in Cricket.Warren Buffett had enough money at age of 20 that he could have diversified into 100 different businesses…but he stuck to Stock investing. Ramanujan,flunked in many other subjects other than maths and landed in a  clerical job,but his flair for Numbers helped him to take Cambridge by storm
So, my conclusion is this….Risk is what you perceive when you do not know what the purpose is ...a layman's way of looking at the Things…If you know what you are doing  (Purpose) & combine it with single-minded attention despite hurdles ,Rewards are sure to follow.

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